Dean Foods Company has filed voluntary Chapter 11 bankruptcy and will work toward a sale of the company. The proceedings will allow it to protect its business operations and to address debt and unfunded pension obligations.
Dean Foods announced it’s undergoing “advanced discussions” with Dairy Farmers of America, Inc. for a sale of its assets. Meanwhile, customers can expect to continue receiving its dairy products.
Approximately $850 million in debtor-in-possession (DIP) financing has been committed to the company. Upon court approval, Dean Foods will use this financing and cash on hand to support its continued operations through its next steps.
“The actions we are announcing today are designed to enable us to continue serving our customers and operating as normal as we work toward the sale of our business,” said CEO and President Eric Beringause, who joined Dean Foods three months ago. “Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption.”
The company cancelled its quarterly earnings call that was originally scheduled to take place this morning.
Author: News Desk
This piece was posted by our news team! Contact us or submit stories at [email protected].
